Mortgage interest can be claimed as a deduction in specific situations. Here's what you need to know:

For home-based businesses:

1. Eligibility criteria:
   • Part of your home is used exclusively for business purposes
   • It's your principal place of business or used to meet clients/customers
   • The space is used regularly for business
2. How to claim:
   • Calculate the percentage of your home used for business
   • Report in the Business-use-of-home expenses subsection of your:
     • Business, Professional, and Commission Income section to complete a T2125,
     • Fishing Income section to complete a T2121, or
     • Farming Income section to complete a T2042
   • The deduction is based on the business-use percentage of your total mortgage interest

For rental properties:

1. Eligibility:
   • Mortgage interest on a property you rent out is deductible
   • Must be related to earning rental income
2. How to claim:
   • Report in the Rental Income section
   • Include only interest related to the rental property

Important notes:

• Mortgage interest on your principal residence is generally not deductible
• Keep detailed records of all expenses and calculations
• Interest on loans to buy rental property or for home renovations may also be deductible in certain cases

Restrictions:

• Interest on borrowed money to contribute to an RRSP, RESP, RDSP, or TFSA is not deductible
• Interest related to personal-use portions of a property is not deductible

Remember:

• Accurately calculate and document the business-use or rental portion of your mortgage interest
• Consider consulting with a tax professional for complex situations

If you need assistance entering mortgage interest information in Wealthsimple Tax, please contact Wealthsimple support. For specific questions about the deductibility of your mortgage interest, consider consulting with a tax expert.